More than 40,000 GM retirees must decide by 5 p.m. Friday whether to take a buyout of their pensions. If they don't, responsibility for their pensions shifts to a private company. Financial planners have been working overtime to try to help people make a decision.

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Now, today is an important day for more than 40,000 salaried retirees of General Motors. They're facing a major financial decision. This evening marks the deadline for accepting a pension buyout.

Michigan Radio's Tracy Samilton explains.

TRACY SAMILTON, BYLINE: The GM retirees have two choices: either take a lump-sum payment - which can range from 400,000 to $800,000 - or their pensions will be shifted from GM's books to the private insurance company Prudential.

Dean Thurman is a senior partner with Invest Wise in Bloomfield Hills, Michigan. He says there's no one-size-fits-all answer here.

DEAN THURMAN: Half of the folks we recommend go with Prudential, and the other half we recommend take the lump sum and do a rollover into their own IRA.

SAMILTON: But Thurman says retirees should not take the advice of a golfing buddy or that financial advisor with a can't-lose financial scheme. A number of retirees feel betrayed by the offer. They accuse GM of going back on a promise to take care of them for life.

But Harold Frederick of Adrian, Michigan remains grateful to his former employer of 32 years.

HAROLD FREDERICK: General Motors provided us a great job, great living, great benefits for many, many years.

SAMILTON: Frederick's not saying what he'll do, but figures Prudential Insurance will do just fine taking over for GM.

FREDERICK: You have an option to continue your monthly benefit at the same level you've been at. It's a pretty good option to me.

SAMILTON: What this move does for GM is clear. Those underfunded pensions will be taken off the company's books, freeing up cash reserves and possibly improving the company's stock price.

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